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Tax cuts option so obvious Dr Cullen took it

Thursday, August 18th, 2005

Tax cuts option so obvious Dr Cullen took it

With the release of the pre election economic forecast, its time to recall the cliché that governments don't create wealth, business does, says the Employers & Manufacturers Association (Northern).

"Government is finding it easy to spend the extra income generated by people employed in business," said EMA's chief executive, Alasdair Thompson.

"The pre EFU clearly shows there's ample room for tax cuts.

"The earlier assertion by Dr Cullen that tax cuts would be inflationary has now been rejected by him with today's announcement of the tax reduction package for families.

"But across the board tax cuts with a greater proportion going to lower and middle income earners would be fairer.

"A positive approach by Government would have included cuts to the business tax rate, thereby encouraging greater retained earnings by businesses which would allow them scope to pay higher wages and salaries as higher skills were developed.

"Business is dismayed by Government's increasing micro management, and the associated compliance costs which are suppressing innovation and creativity.

"We are alarmed at taxpayers funds being liberally used to buy the votes of discrete parts of the electorate."

ENDS

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